At the annual general meeting on April 25, 2008 it was resolved to appoint a Nominating Committee as per the following.

The four largest shareholders as of August 31, 2008, not being represented in the Board of Directors, shall appoint one representative each, which together with the Chairman of the Board shall be members of the Nominating Committee in respect of the 2009 annual general meeting. The representatives shall be appointed and announced no later than six months ahead of the annual general meeting 2009. The Nominating Committee shall appoint Chairman among themselves, whereby the Chairman of the Board of Directors shall not be Chairman. Should a shareholder decline to participate in the Nominating Committee or leave the Nominating Committee before its work is completed, the right to appoint a representative shall turn to the closest largest shareholder not represented in the Nominating Committee. Should the ownership structure significantly change subsequent to the establishment of the Nominating Committee the composition of the Nominating Committee shall be changed in accordance with the above principles.

The Nominating Committee shall work out proposals to be presented at the annual general meeting 2009 for resolution as regards Chairman at the general meeting, Chairman and other members of the Board of Directors, remuneration to the Board of Directors, fees to the auditor, and principles for appointment of Nominating Committee. The term of office of the Nominating Committee runs until a new Nominating Committee has been appointed in accordance with the resolution on appointment of the Nominating Committee by the annual general meeting 2009.

If the Nominating Committee finds it necessary, it may utilize reasonable resources of external consultants at the account of the company.

The Nominating Committee for the annual general meeting 2008 consisted of Bengt Belfrage, appointed by Nordea Funds, Jörgen Vrenning, Catella Funds, Ragnhild Wiborg, Consepio, and Mats Guldbrand, AMF Pension, as well as Leon Rosenberg, Chairman of the Karo Bio Board of Directors.

Shareholders who would like to submit a proposal to the Nominating Committee 2009 are welcome to write to Nominating Committee, Karo Bio AB, Novum, SE-141 57 Huddinge, Sweden.

Proposals should be submitted as soon as possible, but no later than February 26, 2009, to ensure that the Nominating Committee has sufficient time to consider them.